An act relating to liability standards for developers and deployers of artificial intelligence systems

This bill establishes liability standards for developers and deployers of high-impact artificial intelligence systems in Vermont. It directly affects companies (excluding small businesses with <20 employees or <10,000 users) that create or operate AI systems making consequential decisions - such as in criminal justice, housing, employment, healthcare, or critical infrastructure. Key provisions require developers to ensure systems are safe for foreseeable use and deployers to guarantee systems don’t harm individual rights, with specific definitions for "high-impact AI" and "harm" (including physical, financial, reputational, or psychological injury). The law applies only to systems meeting the defined high-impact criteria, not general AI tools.